Dual-Use Technology in the Nordic Region

The convergence of geopolitical pressures, technological maturation, and institutional support creates a favorable environment for dual-use technology development in the Nordic region, with particular strength in autonomous systems, space technology, cybersecurity, and advanced communications infrastructure.

The Nordic defence and dual-use technology sector has undergone dramatic transformation since 2022, primarily driven by Russia’s invasion of Ukraine and the subsequent NATO accessions of Finland and Sweden. Nordic pension funds are well-positioned to substantially increase investments in leading defence groups and dual-purpose SMEs in 2026 and 2027, with Danish pension funds led by AkademikerPension and PFA having already doubled their capital investments in defence and security firms since June 2024. [1] The Nordic states will spend a total of €50bn on defence and security in 2026, almost 30% higher than what the four Nato-aligned nations spent in 2020, with projected total capital outlay rising above €70bn.[2]

The region benefits from strong institutional frameworks for dual-use development. Approximately 15,000 scaleups – around 25% of the overall VC-backed ecosystem in NATO and allied countries – are working on Dual-Use technologies that serve both civilian and defence purposes, though currently only about 5-6% (700+) of these Dual-Use companies have extended their solutions into defence.[3] This suggests substantial untapped potential for conversion of civilian innovations to military applications.

Most Prominent Technology Areas

Counter-Drone and Autonomous Systems

Counter-drone technology represents one of the most active Nordic dual-use sectors. Nordic Air Defence emerged from stealth mode in September 2024 and introduced its first product: the Kreuger 100 dual-use (civil and military) drone interceptor platform, which aims to be ten times cheaper to produce than some conventional technology, such as interceptors or missiles, used to destroy drones.[4] Finland, Sweden, Norway and Denmark signed a technical agreement for joint procurement of unmanned aerial systems (UAV), with the growing joint procurement volume expected to enable the industry to increase its production capacities and reduce the national procurement costs for UAVs in the four countries.[5]

Telecommunications and 5G Networks

Fifth-generation telecommunications infrastructure has emerged as critical dual-use technology. Finland’s Ministry of Defence collaborated with Nordic telecoms Telia and Nokia to conduct the world’s first standalone 5G slice handover between multiple countries in a live network, demonstrating the potential of 5G to provide mission-critical capabilities for defence and other key national security areas.[6] Demand is fueled by 5G-enabled Industry 4.0 programs that expand OT attack surfaces, compelling energy, manufacturing, and automotive verticals to converge IT and OT defences.[7]

Cybersecurity

The Nordic cybersecurity market demonstrates robust growth trajectory. The Nordics cybersecurity market was estimated at 12 billion USD, with expectations to grow drastically over the next five years, with Finland and Sweden witnessing a fourfold increase in Cyberattacks after applications to join NATO.[8] Cloud security led with 26% of Nordics cybersecurity market share in 2024, whereas integrated risk management is projected to grow at a 15.2% CAGR.[9]

Space-Based Intelligence and Satellite Technology

Space technology represents a rapidly expanding dual-use domain. A consortium of Ukrainian, Nordic and eastern European companies is hoping to raise more than 100 million euros ($115 million) to build a constellation of 70-plus imagery satellites that would provide intelligence along Russia’s border, with the dual-use satellite constellation dubbed Intermarsat.[10] Finland completed a 158-million-euro ($182-million) acquisition of ICEYE SAR satellites in September 2025 to establish sovereign space-based surveillance, while Norway launched a collaboration with Surrey Satellite Technology to develop a satellite constellation for maritime domain awareness.[11]

Quantum Computing

While quantum technology development occurs across Europe, the Nordic region maintains active participation. IQT Nordics 2025 took place in central Gothenburg at Chalmers Conference Centre in May 2025, featuring sessions on end-user applications and quantum strategies in industrial sectors, commercializing quantum applications, innovations enabling progress in quantum computer platforms, and developments in quantum sensing.[12]

Artificial Intelligence and Advanced Computing

AI integration spans multiple defence applications. German AI defence company Helsing partnered with Sweden’s Saab, winning a joint contract from Germany’s Ministry of Defence to upgrade 15 of the Luftwaffe’s Eurofighters with AI-enabled cognitive electronic warfare capabilities.[13]

Opportunities in 2-Year Perspective (2025-2027)

Near-Term High-Growth Areas

Defence Industrial Cooperation: Nordic ministers of defence and chiefs of defence all hail close Nordic defence cooperation as the objective, with numerous new Nordic defence initiatives emerging, particularly in integrated air force command and control structures within NATO.[14] This creates immediate opportunities for companies providing interoperable systems.

Counter-Drone Systems: The rapid maturation of affordable drone interceptor platforms presents immediate commercialization opportunities. Nordic Air Defence aims to reduce European reliance on international supply chains, particularly from the United States, by developing technology within Europe, with future expansion plans including diversifying into defence technologies for land, sea, and subsea domains.[15]

Cybersecurity Integration: Sweden commanded 39% market share in 2024, whereas Norway exhibits the fastest 10.1% CAGR to 2030 in the Nordic cybersecurity market.[16] The convergence of IT and operational technology security for Industry 4.0 applications offers substantial near-term opportunities.

Private 5G Networks: The deployment of private 5G networks for defence and critical infrastructure represents an immediate growth sector. About 9,000 people gathered to discuss NATO framework for future cooperation, with most NATO countries expected to increase their military spending to 3.5 percent of GDP on hard defence and an additional 1.5 percent on defence-related investments such as cybersecurity and military mobility by 2035.[17]

Opportunities in 5-10-Year Perspective (2025-2035)

Long-Term Strategic Areas

Space-Based Intelligence Architecture: The European Defence Fund 2025 continues to drive innovation in space technologies, recognizing the critical role of satellites in both military and civilian applications, with EDF prioritizing resilient, secure, and advanced satellite capabilities.[18] The European Space Agency proposed a 1-billion-euro dual-use satellite network featuring optical and radar sensors, onboard artificial intelligence, and edge-computing modules as part of a €6 billion space security strategy extending until 2035.[19]

Quantum Technologies for Defence: Research shows that quantum computing, quantum communication, and quantum sensing could together generate up to $97 billion in revenue worldwide by 2035, with quantum computing growing from $4 billion in revenue in 2024 to as much as $72 billion in 2035. [20] Applications in secure communications, sensing, and computing offer long-term opportunities.

AI-Driven Autonomous Systems: The integration of artificial intelligence with unmanned systems across domains (air, land, maritime, subsea) represents a fundamental transformation. EDF 2025 is promoting AI-driven space technologies that enhance automated threat detection, anomaly analysis, and predictive analytics in satellite imagery, including edge computing in space.[21]

Integrated Multi-Domain Operations: Finland has approximately 200 companies operating in the space sector, with ecosystemic collaboration between new actors and companies that have been in the defence industry for a longer time already beginning to form through Business Finland’s leading company projects.[22] The convergence of space, cyber, electronic warfare, and kinetic capabilities creates opportunities for systems integration.

Advanced Manufacturing and Materials: The NIB entered a €400m uncommitted credit facility with Lithuania to boost the Baltic state’s national defence system during 2025 to 2027, earmarked for advanced technology and dual-purpose defence materials procurement including IT, counter-drone systems and cyber security enhancement services.[23]

Critical Success Factors

The Nordic region’s advantages include strong public-private collaboration frameworks, high technology readiness levels, and coordinated defence procurement through NORDEFCO. With the signing of the new Vision for 2030 under the Danish chairmanship, the Nordic defence cooperation entered a new era, paving the way for the Nordic countries to be able to conduct joint training and operations complementary to NATO deterrence and defence.[24]

However, challenges remain. Many VCs are still wary of investing in pure defence companies due to restrictions LPs put on funds to back startups that produce ammunition or weapons, though this caution approach is slowly fading.[25] The regulatory environment continues evolving, with the European Investment Bank updating definitions of dual-use startups eligible for funding.

Sources

The analysis draws from multiple authoritative sources including:

– NATO Parliamentary Assembly reports on dual-use technologies (2024)

– Mind the Bridge “Dual Use Technologies 2025 Report”

– StartUs Insights military technology trends analysis (2025)

– marked.us (2025)

– BDO Ukraine defence-tech analysis (2025)

– European Parliamentary Research Service briefings (2025)

– US-China Economic and Security Review Commission annual reports

– Industry market research from Straits Research and Cervicorn Consulting

– Academic analyses from institutions including IE University and the Bulletin of the Atomic Scientists

– Defence industry publications including SpaceNews, Breaking Defence, and Military Aerospace